This business plan provides an overview of ReHabiliments, a clothing and apparel company. It includes information about the company's background, mission, products offered, market analysis, competition, target market segment strategy, marketing plan, and financial plan.
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Running head: BUSINESS PLAN BUSINESS PLAN Student’s name University Name Author note
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1 BUSINESS PLAN Table of Contents 1.0. Company Background..............................................................................................................2 1.1 Mission..................................................................................................................................2 1.2. Products offered....................................................................................................................3 2.0. Market analysis.........................................................................................................................3 2.1 Industry analysis....................................................................................................................3 2.2 Competition...........................................................................................................................4 3.0 Target market segment strategy.................................................................................................4 4.0 Marketing plan...........................................................................................................................5 4.1 Products.................................................................................................................................5 4.2. Pricing strategy.....................................................................................................................6 4.3. Distribution strategy.............................................................................................................7 4.4 Promotion strategy.................................................................................................................7 5.0 Financial plan.............................................................................................................................8 6.0 Critical risks...............................................................................................................................9 7.0 Recommendation.......................................................................................................................9 8.0 Conclusion...............................................................................................................................10 References:....................................................................................................................................11 Appendix........................................................................................................................................13
2 BUSINESS PLAN 1.0. Company Background ReHabiliments is a private limited corporation, the business organization deals with clothing and apparel business. The business headquarters is located in Sandybar Harbor. The company was established in the year 1994; it promotes the group and increases its revenue since the year of its establishment. The company sells t-shirts and sweat shirts to the public. The entire business of ReHabiliments is established in based on the principle of Harmony. They highly believe in harmony of thought, purpose and humility(Abrams 2013). They believe that when the people of the group are one, they can achieve support in their purpose and will be accepted in the market irrespective of their weakness. Upon purchasing the clothes and garments of the ReHabiliments, the customers make a decision to be a part of the company’s community which is dedicated for the good of humanity. To compare it with Blueprints Business Planning Pty Ltd, the company is a medium sized business that specializes in management consulting service. 1.1 Mission ReHabiliments is clothing and garments industry, the company offers trendy clothes and garments such as casual wear, active wear, head gear, leather coats and jackets. It sells its products internationally which consists of people of all the age groups. The aim of the company is to transform the lives of the people who are less fortunate. It aims to secure the funds with the combination of investments and dept strategies. It aims to initiate marketing and sales to expand the company’s business. It is also the mission of the company to expand the clothing line and generate healthy sales revenue(Abrams 2013). To compare it with the goals and mission of Blueprints Business Planning Pty Ltd, they aim to employ employees with approximate salary of
3 BUSINESS PLAN $42,000 p.a. in order to meet the expenses and generate the net profit of around $2000 for its future investments. Its goals are to establish viable consultancy service by employing five people(Abrams 2013). 1.2. Products offered ReHabiliments offers clothes and garments ranging from trendy wears, casual and active wears, it sells t-shirts and sweat shirts. It offers Jerseys, Denim jackets, pants. The business offers casuals including Dockers-Khakis, Polo shirt, traditional suits. It provides active wear and sportswear such as sweat suits, sweatshirts for men and women. It offers workout gears including workout tops, workout bottoms, socks and jackets(Baker, Addams and Davis 2013). It offers leather garments, baseball jackets, head gear including ski Hat, Beanie Fitted Baseball Cap, Sun Visor. 2.0. Market analysis 2.1 Industry analysis The demand for the clothing and apparel textile products is mature and slow growing. There is intense competition in the market and the structure of the company and the operations are continuously changing. The market is highly fragmented. In order to penetrate the market, the company has to initiate high levels of research and specialization in the market. The clothing and apparels are sold domestically and well as internationally. The company has a unique trade structure which enables the company to enhance its business opportunities(Blackburn, Hart and Wainwright, 2013). This feature of the market creates opportunity for the designers to enter the market and enable good visibility of their products. The products of the company are directly bought from the manufacturers and then are marketed. Since there is intense level of competition in the market the company needs to invest extensively in both money and time and there might
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4 BUSINESS PLAN not be any assurance of positive return on investment. As compared to Blueprints Business Planning Pty Ltd, there is a definite demand for generic management consulting service, however, the industry is ill defined and unregulated(Ceptureanu, Ceptureanu and Visileanu 2017). 2.2 Competition There is intense competition in the market in regard to prices. There is an increasing pressure of competition from the foreign companies. Hence they need to shift the push strategy. There are poor economic conditions which forces the industry to keep the prices of the products and service low in the market. The clothing and garment industry competes with the other sector of the retail industry. The other sectors of the industry include the electronics wholesalers and retails, the other discount stores, shoes, convenience and other stores in the market. Therefore it can be said that the apparel industry is dynamic and has highly competitive environment. The company faces competition from variety of sources which includes The Gap, Inc, Nautica Enterprises, Inc, and others(Drexler, Fischer and Schoar 2014). The closest competitor is FUBU corporations in terms of popularity, product range, growth and profitability. To compare it with Blueprints Business Planning Pty Ltd, its competitors are similar potential strategic allies including other management consultants, accountancy practices, commercial training providers, accountants, business enterprise centers(Finch 2013). 3.0 Target market segment strategy The clothing and garments manufacturers have a diversified product line and self owned outlets. The company believes that age is not a barrier, the consumers crave for new and different type of clothing and apparel, and they actively seek new fashion forward items. The target the following market segment:
5 BUSINESS PLAN Adult clothing- ( Both Women and men), Age group- 20-50 years Children’s wear- ( Infants), Age group 0-5 years Junior clothing- ( Boys and girls), Age group- 5-20 years Sports/ active wear- ( Men and women)- Age group- 10-50 years As compared to Blueprints Business Planning Pty Ltd, it targets the Central Sydney metropolitan area; it targets the new small business owners as well as the existing owners who are interested to increase their knowledge. It targets the business owners with sufficientincome(approximately$200000)whowouldbeabletopayforthe service(Drexler, Fischer and Schoar 2014). 4.0 Marketing plan 4.1 Products ReHabiliments provides a full collection of garments and apparels which are classy, versatile and upscale. The apparel lines include the active and casual wears, leather coats, baseball jackets, headgear and workout gear. The company started its business by adding logos in their apparels, producing whole items with the use of team designers(Huq, Chowdhury and Klassen 2016). Product description Casual wear: It includes business casuals like Dockers-Khakis, Polo shirts, business appropriate clothes, clearly casuals, resort casuals and casual confusion. It carries variety of products including: Jerseys, T-shirts, Denim Jackets, Denim pants. It provides variety of products that suits the interest and desire of every individual. It is suitable for casual wear or for afternoon leisure(Kant Hvass 2014). The clothing is made of high tech fabrics and contains functional, ergonomic designs. It aims to grab the customer who desire comfort n their daily wear.
6 BUSINESS PLAN Active wear/ sportswear: it offers yoga pants, track suits, and athleisure lifestyle apparel. It offers high performance clothing for sportswear an active sport, and adventure purpose. It includes sweatshirts, sweat suits, workout gear, workout tops and bottoms, cotton jackets with polyester blend. It contains a natural look and the fabric of the clothing adds to the style of the clothing. It targets the customers who are active and sporty in nature(Pike and Page 2014). The apparels are highly suitable for the customers are remain active throughout the day and are adventurous in nature. Leather garments: it offers leather motorcycle jackets, this product captured the heart of men and women, and it carries on making classic traditional leather, motorcycle jackets. The apparels include motorcycle jackets and leather pants. The leather jackets are versatile and classic article of clothing provided by the company(Russell Atchison and Brooks 2018). Leather garments are highly stylish and are fashionable. Baseball jackets: The baseball jackets have more conservative color schemes of grey and back. They are made of thick and lined satin with finest details. It provides the baseball jackets with sports symbol. Headgear: it includes ski Hat, Beanie, fitted baseball cap., Sun visor. They are an integral part of the young generation’s wardrobes along with the fashion items. It provides variety of hats which suits the taste of different people. Hats are highly fashionable wear; it offers protection from both hot summer days and the chilling cold of the winter (Schaper et al.2014). The company provides hats of distinctive designs and they are highly fashionable.
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7 BUSINESS PLAN 4.2. Pricing strategy Casual products: Jerseys- $65, T-shirt- ranging from $ 25-60, denim jackets-$60-65, Denim pants- $50 Active wear/ sportswear: sweatshirts- $ 60- $70, Sweat suits- $100 Workout gear: workout tops-$ 25, workout bottoms: $35, socks-$15, Jackets - $45 Leather garments: Motorcycle jackets-$300, leather pants-$ 175 Baseball Jackets: Baseball jackets: $75 Headgear: Wool Ski Hat-$15, Beanie-$12, Fitted Baseball Cap-$25, Sun Visor-$15 As compared to the pricing strategy of Blueprints Business Planning Pty Ltd, they charge rates for casual consulting and other training services at $120 per hours. The standard price for a standard business plan includes $ 2000 and other specific costs. The terms of payment are within 10 working year(Turker and Altuntas 2014). 4.3. Distribution strategy ReHabiliments follows a traditional distribution channel, t has unique trade structure, and this enables the business to enhance business opportunities. Since the industry faces strong competition in the market, they are highly recommended to invest majorly in time as well as money, however, this might be ensure them with positive results(Vedel and Ellegaard 2013). The materials for the clothing are bought from the distributors and directly from the manufacturers. They use sales representatives in order to facilitate its entry into the new market, since the competition is extremely high. Several showrooms are use to display the wide range of products, the customers can place their orders throughout the year. Whereas, the services provided by Blueprints Business Planning Pty Ltd, is home based, they deal with the clients directly at their
8 BUSINESS PLAN own premises(MacCarthy and Jayarathne 2015). The company follows no particular structure for distribution arrangement. 4.4 Promotion strategy ReHabiliments uses effective offline and online strategies to promote its products. It advertises its products both at their website online and offline, thereby adding value to their products. It organizes events and activities on special occasions and reaches the target audience with an invitation for special celebration. It celebrates its anniversaries and special dates and takes advantages of the moments to promote their products and services. Further, it window displays its products; they enhance their showrooms and make it attractive for the customers(Russell Atchison and Brooks 2018). Packaging is also an important part of their promotional techniques they use cardboard and recycled paper to wrap the clothing and apparels and emphasizes on the company name. As compared to Blueprints Business Planning Pty Ltd, the services are not necessarily being promoted to the general community. However, it is highly essential to promote its services to potential clients and seek work from the clients later on. The company use business cards and letterheads as a promotional tool, other promotional tools include direct ails, telephoning contacts, listing name in Sydney Yellow pages, promoting literature, increasing its networks, linking with the other practicing professionals, using testimonials and enhancing public relations. They significantly focus on public relation initiatives (Schaper et al. 2014). 5.0 Financial plan ReHabiliments is seeking a fund of $ 100,000 additionally to the existing fund of $ 100,000(Shen et al. 2013). The financial objectives include securing finance from SBA lender, reinvest its profits for increase its market share. The financial plans are highly based upon sales
9 BUSINESS PLAN volume. The sales volume is to be detailed in the sales forecasts which would represent company’s assets, liabilities, capital, revenue and its expenses. It plans to utilize its funds efficiently and reinvest its profits for further business investments. Since the company is at its early stage of development, the company will be concentrating its marketing on the market segments to drive its income statement(Turker and Altuntas 2014). With gradual improvements, the management will be analyzing and monitoring the track planned with the actual financial figures. The company will be using the funds with business utilize including salary of the employees, rental purpose, insurance, advertising, office supplies and miscellaneous expenses. The capital of the business and the funds is to be used for start-up costs, further develop the business, enhance its business infrastructure, establish reputable storefront, improve its internal systems, invest in product development and improve its extensive marketing and geographic positioning of the company(Vedel and Ellegaard 2013). Compared to the financial plan of Blueprints Business Planning Pty Ltd, it is assumed that the revenue will be paid within month’s issues; no provision has been made for inflation or increase in costs. Depreciation of equipment items has been calculated using straight line method at 10% premium the sales is assumed to be 60%; the sales price is $ 50 (Finch 2013). The directors of the business will be contributing to capital. The sales income of the next year will be based on the commitments of the early orders from the clients which will initiate cash flow. The bank loans will not be required(Drexler, Fischer and Schoar 2014). 6.0 Critical risks Some of the risks faced by the ReHabiliments are marketing; the clothing stores might incur the risks trough the marketing and sales strategy. The business might face the risks of trend analysis, trend assessment is another risk, trends are highly fluctuating, ever changing and are
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10 BUSINESS PLAN often elusive in nature. These risks are vital for the company. Also there is high competition in the market which might reduce the profitability of the company. As compared to the risks faced by Blueprints Business Planning Pty Ltd, there is a liability issues, there might be excessive workload(Huq, Chowdhury and Klassen 2016). 7.0 Recommendation It is recommended that ReHabiliments must initiate creativity and ingenuity in order to meet the demands and requirements of the customers. Since the company might face fluctuations in the economic conditions, demographic trends, behavior of the customer and the pricing, the company is recommended to enhance their production and improve their promotional strategies. By considering the market analysis accurately and analyzing the customer base the company will be able to enhance its sales and will be able to increase its profits. In order to attain market leadership, the company needs to secure initial capital and invest its funds in a most appropriate manner(Kant Hvass 2014). By efficient allocation of funds the company will be able to acquire the necessary requirements of the business. 8.0 Conclusion Therefore, from the above analysis it can be concluded that there is high competition in the market. However, the company with its aggressive marketing strategy, it can achieve aggressive sales forecasts and generate revenue in the next financial year. It has also been analyzed that ReHabiliments managements has successfully determined the market trends and potential customer base and it has the ability to grow and expand. It will be able to capture 10% of the urban customers. The company has the potential to be a highly regarded resource in the domestic as well as the international market. Due to the company’s unique identity and aggressive marketing strategy, the company can develop its products with strategic partnership
11 BUSINESS PLAN with other clothing outlets. The company’s profitable revenue model has the potential to provide satisfactory returns on the potential investments. It can be concluded that ReHabiliments will be able to achieve operational success in its next financial years. The report has analyzed and compared the business plan of ReHabiliments with the business plan of Blueprints Business Planning Pty Ltd, References: Abrams, R.M., 2013.The successful business plan: secrets & strategies. The Planning Shop. Baker, W.H., Addams, H.L. and Davis, B., 2013. Business planning in successful small firms.Long range planning,26(6), pp.82-88. Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategyandowner-managercharacteristics.Journalofsmallbusinessandenterprise development,20(1), pp.8-27. Ceptureanu, S.I., Ceptureanu, E.G. and Visileanu, E., 2017. Comparative analysis of small and medium enterprises organizational performance in clothing industry/Analiza comparativa a performantelororganizationale ale întreprinderilor mici si mijlocii.Industria Textila,68(2), p.156.
12 BUSINESS PLAN Cortez, M.A., Tu, N.T., Van Anh, D., Ng, B.Z. and Vegafria, E., 2014. Fast fashion quadrangle: An analysis.Academy of Marketing Studies Journal,18(1), p.1. Drexler, A., Fischer, G. and Schoar, A., 2014. Keeping it simple: Financial literacy and rules of thumb.American Economic Journal: Applied Economics,6(2), pp.1-31. Finch, B., 2013.How to write a business plan(Vol. 35). Kogan Page Publishers. Freise, M. and Seuring, S., 2015. Social and environmental risk management in supply chains: a survey in the clothing industry.Logistics Research,8(1), p.2. Hills, G.E., 2015. Market analysis in the business plan: Venture capitalists' perceptions.Journal of Small Business Management (pre-1986),23(000001), p.38. Huq, F.A., Chowdhury, I.N. and Klassen, R.D., 2016. Social management capabilities of multinational buying firms and their emerging market suppliers: An exploratory study of the clothing industry.Journal of Operations Management,46, pp.19-37. KantHvass,K.,2014.Post-retailresponsibilityofgarments–afashionindustry perspective.Journal of Fashion Marketing and Management,18(4), pp.413-430. Kozlowski, A., Searcy, C. and Bardecki, M., 2015. Corporate sustainability reporting in the apparel industry: an analysis of indicators disclosed.International Journal of Productivity and Performance Management,64(3), pp.377-397. MacCarthy, B.L. and Jayarathne, P.G.S.A., 2015. Sustainable collaborative supply networks in the international clothing industry: a comparative analysis of two retailers.Production Planning & Control,23(4), pp.252-268.
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13 BUSINESS PLAN Pike, S. and Page, S.J., 2014. Destination Marketing Organizations and destination marketing: A narrative analysis of the literature.Tourism management,41, pp.202-227. Russell,R.,Atchison,M.andBrooks,R.,2018.Businessplancompetitionsintertiary institutions: encouraging entrepreneurship education.Journal of Higher Education Policy and Management,30(2), pp.123-138. Schaper, M,.Volery,T,.Weber,P, and Gibson,B, 2014. Entrepreneurship and Small Business 4thed.Cornwall: Wiley Shen, B., Choi, T.M., Wang, Y. and Lo, C.K., 2013. The coordination of fashion supply chains with a risk-averse supplier under the markdown money policy.IEEE Transactions on Systems, Man, and Cybernetics: Systems,43(2), pp.266-276. Software, P. (2019).Free Retail and Online Store Business Plans | Bplans. [online] Bplans.com. Availableat:https://www.bplans.com/retail_and_online_store_business_plan_templates.php [Accessed 13 Apr. 2019]. Turker, D. and Altuntas, C., 2014. Sustainable supply chain management in the fast fashion industry: An analysis of corporate reports.European Management Journal,32(5), pp.837-849. Vedel,M.andEllegaard,C.,2013.Supplyriskmanagementfunctionsofsourcing intermediaries:Aninvestigationoftheclothingindustry.Supplychainmanagement:An international journal,18(5), pp.509-522.
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15 BUSINESS PLAN Appendix Market analysis
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